Supplier Evaluation Process BHEL

SUPPLIER EVALUATION, APPROVAL & REVIEW PROCEDURE

February, 2010 (Amendment 01 dt: 12.04.2010)

Corporate MM BHARAT HEAVY ELECTRICALS LIMITED

New Delhi

Chapter- III Supplier Registration and Assessment Procedure

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SUPPLIER REGISTRATION AND ASSESSMENT PROCEDURE 1.0

INTRODUCTION The system aims to select reliable and quality conscious suppliers. The formats for assessment of supplier are based on numerical rating to minimize subjectivity.

2.0 SUPPLIER REGISTRATION AND ASSESSMENT 2.1 The suppliers shall fill up the following Supplier Registration forms (SRF) as applicable: Category of Supplier (A)

a)

Indigenous

b)

Indian Stockist/ Trader/ Distributor/ Dealer/ Authorised Agent/ Channel partner/ Indian Sales office or Subsidiary of registered foreign principal Foreign

c) (B)

Contractor

II

FORM Page no. 1-10 11-12 13 1-10

III

1-2

VI

1-10

Annexure II

Type OS QS TC OS

Parameters marked with * in SRF carry scores. 2.2

Supplier Registration Process The process of source selection consists of following stages:

2.2.1

Information Stage

2.2.2

Assessment Stage

2.2.3

Registration Stage

3.0

Information stage The information about suppliers is received in Supplier Development Cell. Some of the sources of data are as follows: a) Supplier approaches directly. b) Information received through various disciplines of organisation such as Engg./MM/ Technology etc. c) Through Web search/ News papers/ Magazine/ Business Catalogue / Exhibitions/ Seminars / Electronic media etc. d) Suppliers technically qualified in Open Tenders e) Customer/ collaborator recommendation

3.1

Recommended guidelines for dealing against each of above situation.

3.1.1 For S. N. 3.0 (a), (b) and (c), the documents sent by suppliers will be scrutinized by SDC/SRC and referred to Convener of the concerned MISCC for review by MISCC. The MISCC may recommend any of the following: a) The item is not required.

Chapter- III Supplier Registration and Assessment Procedure

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b) There are sufficient numbers of suppliers and the applicant supplier is not required. The unsuccessful applicants shall be accordingly communicated within five days of the MISCC recommendation by SDC. c) In case item is required, supplier may be advised to download the Supplier Registration Forms from www.bhel.com and submit the same to SDC/SRC. 3.1.2

For S.N. 3.0 (d) and (e), in case of un-registered supplier, the necessary Supplier Registration Form may be got filled up from the supplier by concerned MM group and submitted to SDC/ SRC.

4.0

Assessment Process: The supplier under 2.1 (A) (a) & (b) shall fill the Supplier Registration Forms given in Annexure II for assessment on the basis of following three criteria: a) Organisational Soundness

- Part A

b) Quality System c) Technical Competence

- Part B - Part C - specific Technical Competence, if required, to be filled later on when sent to supplier by BHEL.

The parameter with * marks shall be the scoring parameters. The registration of suppliers shall be based on the marks scored. 4.1

Organisational Soundness will be judged on the basis of information furnished by the supplier on the following aspects: General information about organization, which includes:a) Ownership information; b) Financial information; c) Registration particulars d) General Manufacturing facilities e) Industrial relations The forms placed at Part-A of Annexure II relate to Organisational Soundness. Supplier must answer all questions

4.2

Quality System will be judged on the following aspects: a) Incoming material control b) Process Control c) Control of Non-conformance d) Control of measuring & monitoring device e) Conformance to safety requirement f) Customer Supplier communication The forms placed at Part-B of Annexure II relate to Quality System. Supplier must answer all questions

4.3

Technical Competence For jobs to BHEL design & technology: The technical competence of supplier will be judged on the basis of his understanding about BHEL product specification and its criteria, the process capability of the machines available with the supplier and the experience of the manpower For jobs procured on the basis of performance specification (Design & Technology is of supplier): As design and technology is of supplier, BHEL cannot give the dimensional tolerances but only specify the performance specifications in following manner:

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a) Critical performance specifications b) Major performance specifications c) Minor performance specifications While assessing the supplier for performance specification, following should be examined: (i) Design capability for the product to achieve the desired performance specification (ii) Quality Control Plan & verification of its implementation & acceptance criteria (iii) Process capability to produce critical components & major components (iv) Adequacy of final product testing Part C of Annexure II relates to technical competence assessment. If specific technical competence is not required, then 15 marks may be distributed on pro-rata basis to Common Technical Competence so as to arrive total of 25 marks for evaluation. 5.0

Assessment Stage

5.1

On receipt of filled-up Supplier Registration Forms, SDC will send an acknowledgement to the supplier within three working days.

5.2

MISCC shall scrutinize the registration forms, if required, with the help of TCA. If the supplier, prima facie, is found suitable/ required, MISCC will send the product specific Technical Competence form (along with specification, standard, drawing etc, if necessary) directly/ through SDC to the supplier for his response. Subsequent to receipt of the supplier‟s response, MISCC / TCA will assess the reply along with the SRF and complete the marking as per Score Sheet (Part D) in Annexure II.

5.3

On the basis of supplier‟s score and other information given by supplier, MISCC will give any of the following recommendations within one month.

5.3.1

If supplier is not found up to the mark at any stage during process of registration, SDC will be intimated accordingly for onward communication to the supplier.

5.3.2

Supplier can be considered provided he makes improvements in the indicated areas.

5.3.3

Supplier can be considered but visit to supplier‟s works is required for assessment. For this purpose, SDC will coordinate formation of Supplier Evaluation Team consisting of members from concerned purchase, quality and engineering / technology / indenting departments. The team shall comprise minimum two members, one of whom shall be a certified Assessor. The members of the Supplier Evaluation Team will verify the information given by the supplier in the SRF, Technical Competence form and any other issues necessary to register the supplier. The team will give marks in the Score Sheet Part D and sign the same. MISCC will review the assessment report of the Supplier Evaluation Team and give final approval to SDC.

5.3.4

It is decided to develop the supplier through development indent route for which Development code shall be approved by MISCC.

5.3.5

Based on the details submitted/supplier visit made, if the supplier qualifies for registration, the supplier shall be approved by MISCC for permanent code / trial code.

6.0

Registration stage: Based on the approval of MISCC, registration of the supplier shall be done as per procedure in ChapterIV.

7.0

Numerical rating is assigned for each parameter. Scoring will be done as per Part-D (Score Sheet) of Annexure II.

Chapter- III Supplier Registration and Assessment Procedure 8.0

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Assessment Criteria Assessment criteria shall be as per the numerical rating assigned to each parameter and scoring will be done as per Part –D (Score sheet) of Annexure II.

9.0

Cycle Time for Supplier/ Contractor Registration: After receipt of complete Supplier Registration Form, the evaluation shall be completed within: 1. 2.

3.

Two months in case of Foreign suppliers Three months in case of Indian suppliers/ Indian Stockist/ Trader/ Distributor/ Dealer/ Authorised Agent/ Channel partner/ Indian Sales office or Subsidiary of registered foreign principal/ Contractors where no visit is required. Four months in case of Indian suppliers/ contractors where visit is required.

Chapter- IV SUPPLIER REGISTRATION

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SUPPLIER REGISTRATION 1.0.

Type of Registration Considering the total business operations of BHEL involving purchase of raw material/ components/ capital equipments from different type of business organizations like manufacturer, stockist/ authorized agent etc., following categories of registration are recommended to differentiate one time, development, trial or permanent code supplier.

1.1 One time code 1.1.1 (a) One time code can be given to suppliers who have not been assessed for items like spares of machine tools and customer specific supplier. (b) One time code can also be allotted to suppliers for items to be procured on urgency basis (as per the norms specified in the Purchase Policy under single tender). (c) Wherever (including capital equipment), against an open tender, an order may be released on a technocommercially qualified supplier (if not registered earlier) by allotting a „one time‟ code. Note: The data of one time codes allotted shall be maintained online separately for (a), (b) and (c) above, for review by MISCC. (ii) In all cases where one time code has been allotted to a supplier against a limited/ single tender, one time code shall not be allotted the second time to the same supplier for any material category, unless assessed and registered as per respective SRF. The data for such one time codes should be maintained to prevent reallotment of one time code to such suppliers. (i)

However, one time codes allotted for non PMD items purchased through personal enquiry (as per clause 9.4 of Chapter-II), shall be exempted from above provisions. 1.1.2

For one time code, approval of Unit MM Head or official nominated (not below the rank of AGM) by Unit Head will be required.

1.1.3

Suppliers with one time code shall not be included in PMD.

1.2 (i) Development code: Development code shall be given to a supplier where an item or product is to be developed by the supplier with the assistance of BHEL through development indent route only. 1.2 (ii) Trial Code Trial code can be given to a supplier for the purpose of judging his capabilities for supplying the given product/ item. MISCC shall approve allotment of trial code to the supplier, based on supplier assessment as per respective SRF. 1.2 (iii) Treatment of Development/ trial codes: Development/ trial orders should be for a small quantity (quantity to be decided by MISCC). Maximum three development / trial orders can be placed. Second/ Third development/ trial order can be placed only on receipt of supply against previous order.

Chapter- IV SUPPLIER REGISTRATION

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On execution of one development/ trial order, MISCC; (a) may approve updation of the development / trial code to permanent code if the supply is acceptable and accordingly reassess the SRF. (b) may reject the supplier if the supplies are not acceptable, or (c) shall recommend (within 3 months) placement of another development / trial order in case the supplies are not satisfactory and the supplier has to be developed / tried again for recorded reasons. If three orders are completed by the supplier, MISCC should clearly decide either to allot a permanent code or to reject the supplier. Suppliers with development / trial code though included in the PMD, shall not be considered for regular purchases. 1.3

MISCC shall approve allotment of permanent code to the supplier based on supplier assessment as per respective SRF and inform the same to SDC for updation of records. All suppliers allotted permanent code shall be placed in the PMD and shall be considered for regular purchasing action.

1.4

One time code, Development code, Trial code and Permanent code may be allotted to suppliers covered under Chapter V “Registration of other categories of suppliers” too as per specific approval of MISCC.

2.0

Treatment of existing suppliers a)

Existing development code/ trail code suppliers in PMDs : Suppliers with development/ trial code shall be included in PMD, and MISCC shall process their updation to permanent code as per the provisions spelt out at 1.2(iii) above.

b) Allotment of additional material category/ Deletion of material category already allotted to existing suppliers in PMD: In case a supplier is already registered in some material category in PMD and necessity arises to add/ delete material category, within the same generic type of material, MISCC shall examine supplier‟s request. The technical competence of the supplier for the new material category/ item shall be assessed as per norms and if the supplier is found technically acceptable, MISCC shall send the approval for the relevant code, to SDC for addition/ deletion of the supplier in the recommended material category/ item. In case the new item/ material category is not of the same generic type of material for which supplier is already registered, assessment of technical competence and quality systems by MISCC shall be required. 3.0

Treatment of existing suppliers of Power Sector This aspect has been dealt in detail at clause no. 10 of Chapter II.

Chapter- V Document No. REGISTRATION OF Revision No. OTHER CATEGORIES OF Page No. SUPPLIERS

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REGISTRATION OF OTHER CATEGORIES OF SUPPLIERS 1.0

There may be other categories of suppliers such as sister-unit registered suppliers, foreign suppliers, stockists, agents, dealers, ancillaries and sub-contractors etc. who may require different treatment. The approach for registration of such suppliers is as follows:

2.0

Sister Unit Registered Suppliers (SURS) Registered suppliers of sister units having a permanent code shall be exempted from detailed registration procedure and shall be directly included in the list of approved suppliers for the same / similar class of item provided the supplier‟s past performance at sister unit is satisfactory. Approval of MISCC shall be required. Supplier Registration Forms shall be got filled up for records. In case a foreign supplier registered with a sister unit is being considered, care may be taken to ensure the third party business rating report. However, in case of different item, review of Technical Competence must be done by MISCC.

3.0

Collaborator Registered Suppliers Suppliers approved by collaborators may be exempted from detailed registration procedure and directly included in the list of registered suppliers. Approval of MISCC shall be required. Supplier Registration Forms shall be got filled up for records.

4.0

Sister Units Sister units / divisions shall be exempted from detailed registration procedure and directly included in the list of registered suppliers.

5.0

Registration of suppliers of national/ international reputation Many a times, we may come across a situation where it becomes essential to procure item/ component/ material from reputed suppliers due to customer specifications, critical requirement or similar other considerations. Normally, such suppliers should also follow our supplier registration route. It is, however, experienced that certain suppliers of national/ international reputation, corporate giants or those who enjoy monopolistic status do not evince interest in filling up our Registration Form and follow our guidelines. In view of organizational interest, the following steps are suggested for registration of such exceptional suppliers:

5.1

The concerned Product Head/Functional Head shall prepare a proposal indicating the description of item, PMD/ SD material category and other relevant details, name and complete details of the proposed supplier with justification for seeking registration of the supplier under this provision. However, statutory details like PAN No., Excise control no. etc. shall be obtained from such suppliers for our records.

5.2

The above proposal shall be concurred by MISCC and got approved from Head of the Unit

5.3

Registration of suppliers, as explained above, shall be for Direct material and shall be done on exception basis.

6.0

Registration of Indian Stockist/ Trader/ Distributor/ Dealer/ Authorised Agent/ Channel partner/ Indian Sales office or Subsidiary of registered foreign principal: All such suppliers shall fill up registration form as per Annexure II (page 1 to 10). For registration under above category, the registration criterion shall be the assessment of organizational soundness by MISCC / TCA and Principal‟s authorisation letter and approval by MISCC. In case of Indian Agents of foreign principals, the deed of agency agreement between the foreign principal and the agent should be necessarily ensured.

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7.0

Registration of Foreign Suppliers

7.1

Foreign suppliers shall fill up registration form as per Annexure III. The assessment of foreign suppliers shall be on the soundness of organizational and financial parameters & manufacturing and testing facilities. The details of experience/ performance certificate offered by the supplier should be properly scrutinized. A report of the supplier shall be solicited by BHEL necessarily from a reputed third party business rating agency like Dun & Bradstreet, Credit Reform etc. Additionally, as a parallel activity, business information of the supplier can also be solicited by BHEL from Indian Missions / Local Chamber of Commerce or Industry / reputed bank. However, information received from such sources can be used only for the information not available in the report from the business rating agency.

7.2

The visit to supplier for assessment is not a normal feature of the system. However, visit to foreign supplier for assessment may be recommended by MISCC in exceptional cases based on the following:   

critical nature of item involved or other similar consideration Large volume of anticipated or committed business by BHEL with the foreign supplier. Non availability of performance report from the customers of the foreign supplier.

MISCC shall clearly record the reasons for which the visit is necessary. 7.3

The forms and the documents submitted by the supplier along with the mandatory Business rating report will be reviewed and assessed by MISCC/ TCA. Such assessment which is without marking should be duly approved by MISCC for allotment of permanent/ development/ trial code.

8.0

Suppliers qualified in open tender: Wherever (including capital equipment), against an open tender, an order may be released on a technocommercially qualified supplier (if not registered earlier) by allotting a „one time‟ code. Subsequently, all suppliers who have techno-commercially qualified in the open tender, may also be assessed by MISCC for their registration for allotment of permanent / trial code.

9.0

Enlistment of Sub-Suppliers

9.1

In case of systems/ main packages, the order is placed on main supplier registered with BHEL, for complete system/ main package covering engineering, BOI, site erection and commissioning. The main supplier in turn may place order on sub-supplier for certain components/ sub-systems and BOI etc.

9.2

Depending on customer‟s requirement or criticality of system/ sub-system/ packages, it may be necessary to approve the sub-suppliers of identified critical systems and packages. For this, following procedure will be followed: 1. 2.

3. 4. 5. 6.

Identification of critical systems and packages by concerned MISCC/ SRC. Necessary information as identified by engineering shall be obtained from the sub-supplier through main supplier along with support documents. The information required shall focus on technical capacity and quality capability of sub-supplier. Registration forms need not be filled. The documents shall be reviewed by Engineering/ Quality. Based on the review, the sub-suppliers will be approved by concerned engineering Head. The sub-supplier shall not form part of PMD/ SD.

The above enlistment is only a mechanism to ensure that competent sub-suppliers are approved by BHEL. There shall be no registration of sub-suppliers and orders shall not be placed on sub-suppliers.

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REGISTRATION MATRIX The registration matrix is given on the next page for easy understanding of procedure of registration for various types of suppliers. The abbreviations used are indicated below: MISCC

-

Material Identification & Supplier Control Committee

SRC

-

Supplier Registration Committee (for Power Sector Regions)

SRF

-

Supplier Registration Form

TCA

-

Trained & Certified Assessor

MI

-

Manufacturer (Indigenous)

MF

-

Manufacturer (Foreign)

MC

-

Manufacturer recommended by Collaborator

SU

-

Sister Unit.

SURS

-

Sister Unit Registered Supplier

NA

-

Not Applicable

UNITS

-

All manufacturing units, PS-Regions, PEM, TBG, ISG, ROD etc.

Constituting Authority (CA)

-

As defined in 3.1 of Chapter-I

Chapter-V REGISTRATION OF OTHER CATEGORIES OF SUPPLIERS

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REGISTRATION MATRIX FOR SUPPLIERS OF VARIOUS TYPES Sl no.

Type of Supplier

MI

Authority for initial recommen dation MISCC / SRC

1.

MF

-do-

SU

-do-

SURS

-do-

Reputed Suppliers (Clause 5.0 of Chapter V)

MISCC / SRC

2

3

4

5.

Assessment Criteria

SRF, Technical Competence & team visit, if reqd. SRF & team visit, if reqd

Not Applicable Same item (Size / application) / same class of material, performance feedback Justification for seeking registration

Authority to decide assessment criteria MISCC / SRC

Authority for assessment

Final recommendation for registration

Approving authority for registration

Remarks.

MISCC / SRC, Supplier Assessment Team

MISCC / SRC

Chairman MISCC/ Constituting Authority SRC

Permanent code or Development code or Trial code

-do-

-do

-do-

-do

-do

Not Applicable MISCC / SRC

Not Applicable MISCC / SRC

-do-

-do

Permanent Code

-do-

-do-

SURS with permanent code can only be considered. Technical Competence to be verified/ assessed

MISCC / SRC

SRF not required, however, statuary details shall be asked for.

MISCC / SRC

Head of Unit

Exceptional cases only

Chapter-V REGISTRATION OF OTHER CATEGORIES OF SUPPLIERS Sl. No.

Type of Supplier

6.

MC

7.

Stockist / trader/Distributor

Authority for initial recommen dation MISCC/ SRC -do-

/Dealer/Authorised

8.

9

10

11

agent / Channel partner / Indian sales office or subsidiary of foreign principal Petty Item Suppliers

Assessment Criteria

Collaborator document / confirmation Assessment of Organisation Soundness and principal's authorisation letter

Document No. Revision No. Page No.

Authority to decide assessment criteria MISCC / SRC

Authority for assessment of Supplier Registration Form MISCC / SRC

MISCC / SRC

MISCC / SRC / TCA

Final recommendation for registration

Approving authority for registration

MISCC /SRC

Chairman MISCC/ Constituting Authority SRC

MISCC / SRC

-do-

Registration of Agents to be discouraged and avoided to the extent possible.

MM Head/ Nominee of Unit Head -do

One time code will be allotted

-do

One time code will be allotted.

Product MM Head

-

-

No registration recommended

-

OEM for Capital Eqpt, supplier for (a) spares of m/c tools (b)customer specific items (d) Rare or urgent direct materials

Product MM Head

-

-

No formalities required for irregular requirements

-

Customer Specific Suppliers Contractors for PS-Regions

MISCC/ SRC

-

-

--do-

MISCC/ SRC Chairman

SRC

SRC

SRC

SRC

SRF

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Constituting Authority for SRC

Remarks.

One time code will be allotted.

Chapter- VI SUPPLIER PERFORMANCE MONITORING AND RATING SYSTEM

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SUPPLIER PERFORMANCE MONITORING AND RATING SYSTEM 1.0

The Supplier Performance Rating can be used for assessing the performance of a supplier in comparison with other suppliers with a view to decide whether or not to continue to procure the products from the supplier if the Supplier Performance Rating is below a certain limit.

2.0

Supplier Performance Rating (SPR): Supplier performance shall be assessed taking into account the following main factors and calculated for each consignment / purchase order:

2.1

Rating

Weightage

Quality

60

Delivery

30

Service

10

Total

100

Quality Rating (QR): Quality rating is based on acceptable quantity of material offered for inspection or delivered by supplier and shall be calculated as: Quality Rating (QR)

Q Q1 Q2 Q3 2.2

=

(Q1 + 0.75 x Q2 + 0 x Q3) x 60 Q

Quantity inspected Quantity accepted Quantity accepted with concession/ deviation/ rectification Quantity rejected

Delivery Rating (DR) Supplier will be rated on delivery parameters wherein Delivery rating shall be 30 in case of adherence to PO delivery. For non-adherence to PO delivery (i.e. delay in supply), marks to be deducted in proportion of delay to PO delivery. Deduction = 30*delay in days/PO delivery in days

Note: 1. 2. 3.

Delay is calculated on the date of GR/RR basis for indigenous items and date of inspection/ shipment (BL/AWB) etc. for imported consignments. In cases, where delay is on account of BHEL in providing raw materials/ tools/ any other input, the delivery shall be extended with amendment to PO. In case of rectification/replacement of item, the delivery is to be reckoned from the original supply date. Units to put a system in place to capture such data.

Chapter- VI SUPPLIER PERFORMANCE MONITORING AND RATING SYSTEM 2.3

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Service Rating (SR) 10% weightage: The criteria for service rating shall be based on the Demerit factor (negative rating) to be updated by the User/ Quality/ MM group. The service rating shall be 10 in case there is no negative feedback against the supplier for the given supply. Else, the service rating should be reduced proportionally based on the Demerit factor. In case negative feedback (substantiated by documentary evidence) is received from Shop Floor/ Site on the supplies made, at a later date, demerit factor should be applied again accordingly. Units shall decide on the mechanism for updation of the Demerit factor. Supplier Performance Rating (SPR) = QR + DR + SR

2.4

SPR shall be calculated for the period of previous year plus elapsed period of current year or average of last three executed purchase orders, which ever is more as the case my be.

2.5

In case no PO has been executed by the supplier, SPR will be taken as “NOT ASSESSED”.

3.0

Usage of Supplier Performance Rating: The following action is recommended based on SPR score:SPR Score >95 >90 75 =60 1.5:1

(Yes/ No)

OR Quick Ratio > 1:1.75 Should NOT have been referred to BIFR/NCLT or declared “SICK” by any Statutory Authority

(Yes/ No)

NOT QUALIFIED

Annexure VII

Part B: QUALITY : Sl. No. 1

CONTRACTOR EVALUATION

PARAMETER Ability to deliver Quality Services in terms of Evidence of Quality Assuarance within the Organisation on the basis of various information available in the application OR on reports from existing Sites OR reports from Previous Works.

QUALIFICATION CRITERIA EVALUATION BY BHEL 1. 2. 3. 4. 5.

2

Page 2 of 4

Submission of Completion Reports/ certificate Worked satisfactorily with any BHEL Units/Power Sector Regions for similar jobs/works CONTRACTOR having business with 3 or more Customers Having continuous business in the last 3 years ISO 9001/ 14000 and OHSAS 18000 accreditation

NOTE: If any of the above 3 Qualification Criterias are met, the Contractor can be treated as Qualified for Part B. CONTRACTOR evaluation for QUALITY (tick which ever applicable)

QUALIFIED 3

Remarks, if any :

4

Signature of evaluation committee:

NOT QUALIFIED

Annexure VII

Part C: TECHNICAL: Sl no

PARAMETER

1

BASIC REQUIREMENT

Page 3 of 4

CONTRACTOR EVALUATION

QUALIFICATION CRITERIA (MANDATORY)

EVALUATION BY BHEL

Should fulfil the “BASIC Code & Category: REQUIREMENT‟ for the i subject CATEGORY/WORK for which empanelment is sought ii iii Note: To be evaluated for every work for which „Empanelment‟ sought and given suitable code.

iv v vi vii viii ix x

2

Adequacy of T&P, Machinery (owned by the Company)

Adequately available OR Available for the major part

YES/ NO

3

Adequacy of Inspection, Measuring and Testing Equipments (owned by the Company)

Adequately available OR Available for the major part

YES/ NO

4

Remarks, if any :

QUALIFIED 5

Signature of evaluation committee:

NOT QUALIFIED

Annexure VII Page 4 of 4

CONTRACTOR EVALUATION Part D: FINAL RECOMMENDATION

Name of CONTRACTOR :

Table-1 CRITERIA for CONTRACTOR EMPANELMENT (for each PACKAGE/CODE) ASSESSMENT CRITERIA

Sl no

Evaluation of CONTRACTOR for Empanelment

Organisational Soundness

Quality

Technical Capability

1

RECOMMENDED

QUALIFIED

QUALIFIED

QUALIFIED

2

NOT RECOMMENDED

Table-2 Sl No 1

IF NOT QUALIFIED FOR EVEN ANY ONE OF THE ABOVE ASPECTS

RECOMMENDATION FOR EMPANELMENT OF CONTRACTOR GROUP

PACKAGE

2 3 4 5 6 7 8 9 10

Signature of evaluation committee:

CATEGORY

CODE

Recommendation of BHEL

EVALUATION OF CONTRACTOR PERFORMANCE

Annexure VIII PAGE 1 OF 4

NOTE: This Evaluation Should be done EVERY QUARTER by the respective Regions for all contracts under executions. GENERAL Reporting Period Name of Site Name of Sub-Contractor Contract No./ LOI No. & Date Name of work Contract start date I. As per Contract II. Actual date of start Completion Status I. Physical completion in %age II. Running Bill amount paid in %age of Contract Value Scheduled completion time Actual date of completion Awarded Contract Value Final Contract value

EVALUATION OF CONTRACTOR PERFORMANCE

Annexure VIII PAGE 2 OF 4 MAX. SCORE

1.0 QUALITY 1.1

Amenability to Quality System

5

1.2

Adherence to Quality Standards

5

1.3

Preventing recurrence of defects/complaints

5

1.4

Finishing and aesthetics

5

1.5

Housekeeping

5

1.6

Rating of Quality officer for quality control of job

5

2.0 DELIVERY 2.1

Achievements vis a vis Requirements/Commitments

5

2.2

Timely Deployment of Manpower

5

2.3

Timely Deployment of T&Ps and IMTEs

5

2.4

Timely arrangement of consumables

5

3.0

MANPOWER

3.1

Experience and Job knowledge of Supervisory personnel

5

3.2

Aptitude of supervisory Personnel (w.r.t. Attitude, initiative, leadership, cooperativeness etc)

5

3.3

Adequacy of manpower (work force) deployed

5

3.4

Competence of manpower (work force) deployed

5

4.0 4.1 4.2 4.3 4.4

5.0

T&Ps, IMTEs & CONSUMABLES Adequacy of T&P & IMTEs as per site requirement Condition of T&P & IMTEs Ensuring fitness & calibration of T&P & IMTEs Adequacy of consumables as per site requirement

5 5 5 5

SITE INFRASTRUCTURE AND SERVICE

5.1

Site organization vis a vis commitment

5

5.2

Readiness to rectify defects

5

5.3

Providing support documents and records

5

5.4

Speed of response

5

5.5

Cooperativeness in delivering and implementing improvement measures

5

5.6

Approachability of top management during critical requirements and its cooperation

5

SCORE OBTAINED

EVALUATION OF CONTRACTOR PERFORMANCE

Annexure VIII PAGE 3 OF 4 MAX. SCORE

6.0

SITE FINANCE

6.1

Regularity in payment to staff and workers

5

6.2

Financing Site Operations

5

7.0 HSE (Health Safety & Environment) & SA (Social Accountability) 7.1

Health & Safety awareness among employees

7.2

Rating of Safety Supervisor on HSE Aspects

7.3

5

7.2.1 Experience and Job knowledge of Safety Supervisor

5

7.2.2 Rating of Safety Supervisor for controlling safety at site

5

Quality & usage of Safety gadgets 7.3.1 Personal Protective Equipments (PPE)

5

7.3.2 Use of Safety Equipments & Safety in Equipments(Safety Net, Toe guard, Proper earthing, fire-fighting equipments etc.

5

7.4

Use of Safety Posters

5

7.5

Compliance to Social Accountablity Norms

5

7.6

Rating based on Feed back of HSE & SA Audits

5

8.0 OTHERS 8.1

Concern for employees welfare and health (like first aid)

5

8.2

5

8.4

Compliance to statutory requirements, state and local laws/regulations Tendency of taking undue advantage by interpreting contract clauses in their favour (Score 5 for no tendency) Understanding of contract (scope & contract clauses)

8.5

Planning of work activities (Monthly/Weekly/Daily)

5

8.6

Submission of Monthly/Weekly/Daily reports

5

8.3

5 5

SCORE OBTAINED

EVALUATION OF CONTRACTOR PERFORMANCE

Annexure VIII PAGE 4 OF 4

EVALUATION Max score

Score obtained

Weightage factor

Quality

30

0.40

Delivery

20

0.75

Manpower T&Ps, IMTEs & Consumables Site Infrastructure & Service Site Finance

20

0.60

20

0.75

30

0.40

10

1.10

HSE & SA

40

0.35

Others

30

0.30

Weighted Score

Total Weighted Score Any detail which Construction Manager wants to share with management

Less a) Score for accidents attributable to Contractor during the reporting period (Major @ 3 Minor @ 1) Major Accidents ----- Fatal , Permanent Disability, Major Damage to Equipment Minor Accidents ----- All Others

(-)

Net Weighted Score (OUT OF 100 ) : Overall Performance evaluation: Net Weighted Score 80% and Above Between 60% To 80% 60% and Below

Good/Satisfactory/Unsatisfactory

- Good - Satisfactory - Unsatisfactory

Dated:

Section Head/Site Engineer

Specific Recommendation of Construction Manager;

Construction Manager FOR SUB CONTRACT DEPTT.

Dated:

Head (S/C)

GM/PROJECTS Note: This summary evaluation sheet is to be sent to Contractor after every evaluation.